A recent post on the IDB Invest blog explains the benefits of using blockchain technology applied to capital markets. These benefits are directly related to the nature and purpose of the blockchain. This technology enables the sharing of complete and immutable datasets (such as prices, performance, asset liquidity, issues, document trading, etc.) and thereby creates a more transparent and fairer market for participants to price and transact securities.

In summary, the blockchain technology offers the following benefits:
• More accurate and complete information to make better decisions can improve the reliability of information (immutable data) and make new information available faster (shared in real time) to all parties involved (permissioned network participants).
• Reducing issuance costs. This technology offers the possibility of decentralizing the registration and custody of bonds because it is done directly on a blockchain platform and speeding up the issuance and payment management through direct payment between issuers and investors.
• Higher liquidity and larger investor base. Digital assets can be easily divided or partitioned into very small units, making them easy to sell and transfer.
• Monitoring. Blockchain improves the reporting of use of proceeds in thematic bonds, the traceability of the money and the transparency in the impact notification.